KRA’s iTax system has made filing taxes in Kenya faster and more convenient. You can register, file, and pay from anywhere. But the system is also unforgiving. A wrong figure, a missed field, or a late submission can lead to penalties, rejected claims, or a query from KRA months later.

Every year, especially around the 30 June deadline, many taxpayers make the same avoidable mistakes. This article covers the most common ones and how to avoid them.

Mistake 1: Leaving It to the Last Minute

Thousands of people try to file in the last few days of June. The system slows down, P9 forms are missing, and there is no time to fix errors. Late filing carries a penalty even if no tax is due.

How to avoid it: Start in the first quarter of the year. Ask your employer for your P9 form early. File once you have all your documents, and leave time to correct any problems.

Mistake 2: Using the Wrong Return Form

iTax has different return forms for different situations. Individuals with only employment income, individuals with business or rental income, companies, and partnerships each use different forms. Picking the wrong one can mean income is reported in the wrong place.

How to avoid it: Check which return applies to you before you begin. If you have more than one source of income, you will usually need the more detailed form.

Mistake 3: Not Declaring All Income

Some people declare only their salary and forget side income such as rent, consulting fees, or business profit. KRA now receives a lot of third-party data, including information from banks, landlords, and other taxpayers who report payments to you.

How to avoid it: List all your income sources for the year before filing. Include employment, business, rental, and investment income.

Mistake 4: Mismatched P9 and Return Figures

Your employer reports your pay and PAYE to KRA. If the figures in your return do not match what your employer filed, the return may show tax due or be flagged.

How to avoid it: Use the exact figures on your P9 form. If you think your P9 is wrong, ask your employer to correct it before you file.

Mistake 5: Claiming Reliefs Without Proof

Insurance relief and other reliefs reduce your tax. But claims must be backed by proper documents. Claiming relief you are not entitled to, or without evidence, can lead to an assessment later.

How to avoid it: Only claim reliefs you qualify for, and keep the supporting certificates and receipts with your tax records.

Mistake 6: Forgetting Nil Returns

If you have an active tax obligation, you must file a return even when there was no income or activity. Many people with a PIN and no income forget this and end up with penalties.

How to avoid it: File a nil return if you had no income for that obligation. If an obligation no longer applies, apply to remove it from your profile.

Mistake 7: Wrong VAT Figures

For VAT-registered businesses, common errors include claiming input VAT on invoices that are not valid, recording sales in the wrong month, and mismatches between the VAT return and eTIMS data.

How to avoid it: Reconcile sales and purchases with eTIMS every month before filing. Only claim input VAT on valid invoices from registered suppliers.

Mistake 8: Not Withholding When Required

Businesses that make certain payments must deduct withholding tax and pay it to KRA within the deadline. If you fail to withhold, KRA can make you pay the tax yourself, plus penalties.

How to avoid it: Know which payments require withholding. Build it into your payment process so it happens automatically.

Mistake 9: Ignoring Payment After Filing

Filing a return and paying the tax are two separate steps. Some people file, generate a payment slip, and then forget to pay. Interest starts building on the unpaid amount.

How to avoid it: Pay as soon as you file, using M-Pesa, a bank, or another approved channel. Keep the payment confirmation.

Mistake 10: Not Keeping a Copy

After filing, iTax sends an acknowledgment receipt. Many people do not save it. If there is a dispute later, you will need proof that you filed on time.

How to avoid it: Save the acknowledgment receipt, the return itself, and payment confirmation in one folder for each year.

Mistake 11: Sharing Your Password Carelessly

Your iTax password gives full access to your tax records. Sharing it with anyone who offers to “help you file” puts you at risk of errors and fraud.

How to avoid it: Only give access to trusted, registered tax agents, and change your password afterward if you shared it.

Mistake 12: Ignoring Messages From KRA

After filing, KRA may send emails or iTax notices asking for clarification or documents. Ignoring them can lead to an assessment being raised without your input. New Entrepreneurs Starting their businesses should establish good tax compliance habits early and respond promptly to official requests to avoid unnecessary penalties or complications.

How to avoid it: Check your registered email and iTax account regularly. Respond to requests by the deadline.

What If You Already Made a Mistake?

You can usually amend a return in iTax if you find an error. Correcting it yourself is generally better than waiting for KRA to find it. If you have received a penalty, you may be able to apply for a waiver in some cases, especially if you can show a good reason. If KRA has already issued an assessment you disagree with, you have the right to object within the legal deadline.

Getting Help

For simple employment income, many people can file on their own. But if you have several income sources, run a business, or have received a KRA notice, professional help is worth it. Businesses and individuals in the city looking for filing support can work with Gichuri & Partners – Tax Consultants in Nairobi to get returns right the first time.

Final Thoughts

Most iTax mistakes come from rushing, missing documents, or not knowing the rules. Start early, gather your documents, check every figure, pay on time, and save your records. A few careful steps can save you penalties, interest, and long conversations with KRA.